State Bank of India sets Rs 2,000 currency note exchange cap at Rs 20,000

No form or identity proof needed to exchange Rs 2,000 notes, says SBI

The State Bank of India (SBI) has now informed all its branches that no form or identity proof will be needed to exchange Rs 2,000 notes. The lender has also set a cap of Rs 20,000 for a one-time exchange.

The move comes after the Reserve Bank of India (RBI) on Friday declared to withdraw Rs 2,000 notes from circulation with immediate effect. However, the central bank gave people time till September 30 to exchange or deposit these currency notes.

In a press release on May 20, the lender said, "The facility of exchange of Rs 2,000 notes to all members of the public up to a limit of Rs 20,000 at a time will be allowed without obtaining any requisition slip."

Unlike the November 2016 shock of demonetisation, when old Rs 500 and Rs 1,000 notes were invalidated overnight, the Rs 2,000 notes will continue to be legal tender.

According to reports, the central bank has not specified any limit but it will be subject to compliance with extant Know Your Customer (KYC) norms and other applicable statutory requirements.

Although the facility for exchange is available since May 23, many customers were seen visiting their branches with the Rs 2,000 notes on Saturday.

Bank officials returned such customers after advising them about the start date for the exchange.

Some of the customers used cash deposit machines on Saturday to deposit Rs 2,000 notes in their accounts.

(With inputs from PTI)